EU to Impose Additional Tariffs on EV Imports From China

The European Union is planning to impose additional import tariffs of up to 38.1 per cent on Chinese-produced electric vehicles (EV) effective July 2024. Leading Chinese EV-makers BYD Co., Geely Automotive Holdings Ltd. and SAIC Motor Corp Ltd cooperated with the investigation and so received bespoke rates. Specifically, BYD imports will be charged 17.4 per cent, Geely 20 per cent and SAIC 38.1 per cent. All others will be charged 38.1 per cent.
Other BEV producers in China, which cooperated in the investigation but have not been sampled, would be subject to a weighted average duty of 21 per cent. All other BEV producers in China which did not cooperate in the investigation are subject to the residual duty of 38.1 per cent. But there appears to be one exception: “Following a substantiated request…Tesla – may receive an individually calculated duty rate at the definitive stage.”
The initial tariff rates take effect on 4 July 2024. Final duty levels are expected to be adopted by November 2024.
Commenting on the news the European Commission stated: “As part of its ongoing investigation, the Commission has provisionally concluded that the battery electric vehicles (BEV) value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers. The investigation also examined the likely consequences and impact of measures on importers, users and consumers of BEVs in the EU.”
The provisional rates are set, but not a foregone conclusion. “….Should discussions with Chinese authorities not lead to an effective solution, these provisional countervailing duties would be introduced from 4 July by a guarantee (in the form to be decided by customs in each Member State). They would be collected only if and when definitive duties are imposed.”
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